In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the College Nannies + Sitters + Tutors franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a College Nannies + Sitters + Tutors franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a College Nannies + Sitters + Tutors franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned College Nannies + Sitters + Tutors outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of College Nannies + Sitters + Tutors’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average and median bill rate, pay rate, and gross margin percentage for nanny placement services, babysitting services, and corporate back-up care through national account for the entire College Nannies + Sitters + Tutors franchise system

• 2020 average, median, highest, and lowest gross revenue for the 26 single-territory and 43 multi-territory College Nannies + Sitters + Tutors franchisees (separately stated) that were in operation for at least 12 months as of December 31, 2020

Section I – Background Information

14 Things You Need to Know About the College Nannies + Sitters + Tutors Franchise

Hosts Monthly National Virtual Career Fairs to Meet Growing Demand for Services

1.  In late July 2021, College Nannies + Sitters + Tutors announced that it was looking for more caregivers. College Nannies is already the largest employer of nannies and sitters in the United States, and the company is hiring to meet increasing demand. The virtual career fairs were held July 28th, August 25th, and September 29th from 10 a.m. to 1 p.m. and 6 p.m. to 8 p.m. Central Time. Advanced registration was recommended but not required.

2.  Joe Loch, brand president of College Nannies + Sitters + Tutors, said, “With the return to the office or hybrid work, families need care solutions now more than ever. If you are passionate about children, we are looking for you to join our care team.”

3.  Laura Davis, franchise owner for College Nannies + Sitters + Tutors, added, “Whether someone brings experience as a camp counselor, neighborhood babysitter, education major or a lifetime of experience as a caregiver, joining our team rounds out their work experience and lets their skills shine – all while making a difference for children and families.”

4.  All of College Nannies’ locations across 30 states have immediate full-time and part-time positions available. Caregivers are employees of College Nannies and receive a consistent paycheck, supportive management team, and professional development opportunities. Families are fully vetted for a safe work environment.

Four Reasons to Own a College Nannies + Sitters + Tutors Franchise

5.  College Nannies + Sitters + Tutors has been in business for over 20 years and says that the following are a few reasons to choose a College Nannies + Sitters + Tutors franchise:

6.  The Business Never Stops Evolving – Since first starting in 2001, College Nannies + Sitters + Tutors has significantly expanded its services. The company realizes that to stay competitive it needs to consistently stay on top of new industry trends and consumer demands. College Nannies is always paying attention to market and demographic research, and its findings translate into valuable resources for franchisees.

7.  Multiple Revenue Streams – College Nannies + Sitters + Tutors is able to offer its clients unique service types: nannying, babysitting, corporate backup care, and B2B childcare services. Building multiple revenue streams into its business model has been a major benefit to franchisees. Businesses with multiple revenue streams are often better equipped to weather unforeseen challenges and achieve faster growth because they haven’t put all their eggs in one basket. Furthermore, the brand’s nanny franchise model allows franchisees to become the go-to source for virtually all childcare needs in their communities.

8.  A Dedication to Technology – College Nannies + Sitters + Tutors was founded on the need to make finding qualified nannies easier than ever. In the 21st century, convenience goes hand-in-hand with technology, so College Nannies + Sitters + Tutors has dedicated itself to beating the competition in this regard. The best example of College Nannies + Sitters + Tutors’ use of technology is the MySitters app.

9.  Using the app, families can browse the profiles of qualified babysitters in their area with the peace of mind that comes with knowing they’ve been thoroughly vetted. They can easily book babysitting on short notice – taking the guesswork and hassle out of finding quality childcare. Of course, College Nannies + Sitters + Tutors will continue to update its app and develop new technological tools to improve services for customers and franchisees alike.

10.  The Power of Brand Recognition – Having been in business since 2001, College Nannies + Sitters + Tutors has already expanded into hundreds of locations across 30 states, with more on the way. There’s a good chance that many of the people in a potential franchisee’s community are already familiar with who College Nannies + Sitters + Tutors is and what it has to offer. If they’re not, College Nannies + Sitters + Tutors’ strong presence on the internet will allow them to quickly identify a franchisee’s childcare business as a trustworthy source for quality care.

11.  College Nannies + Sitters + Tutors is owned by Bright Horizons Family Solutions, one of the largest childcare companies in the world. Opting to start a similar business from scratch could mean months, even years, spent building a strong reputation, but partnering with College Nannies + Sitters + Tutors ensures that a franchisee will enjoy the benefits of the company’s widespread brand recognition from the start.

Company History

12.  College Nannies + Sitters + Tutors was founded in 2001 by Joseph Keeley in Edina, Minnesota. While Keeley was still in college, he worked as a “manny” (male nanny) for two active boys over the summer. Keeley realized that he was more than just a babysitter and that he had a great impact on those boys. He wanted to help other families match with high quality nannies and sitters. Keeley developed the concept for College Nannies + Sitters and used it to match families with college students, graduates, and teachers, who he felt worked well with children and also had similar values as himself.

13.  After a few years of success, College Nannies + Sitters expanded its services by adding tutoring. The company became College Nannies + Sitters + Tutors in 2005. Over the next decade, the company expanded around the United States. In 2016, College Nannies + Sitters + Tutors was acquired by Bright Horizons Family of Childcare Solutions as a wholly-owned subsidiary. Today, there are College Nannies + Sitters + Tutors locations in more than 30 states.

Entrepreneur’s Franchise 500

14.  College Nannies + Sitters + Tutors did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of College Nannies + Sitters + Tutors franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on College Nannies + Sitters + Tutors’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  176
• Outlets at the End of the Year:  194
• Net Change:  +18

2019

• Outlets at the Start of the Year:  194
• Outlets at the End of the Year:  192
• Net Change:  -2

2020

• Outlets at the Start of the Year:  192
• Outlets at the End of the Year:  188
• Net Change:  -4

Company-Owned

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

Part 1 – Average Rates and Margins

• In this Part 1, the franchisor has prepared 3 tables listing the average bill rate, average pay rate, and average gross margin percentage for the entire franchise system.

• In Tables 1 to 3 below, the bill rate is the average amount that was charged to customers for the specified type of services, as an hourly rate.

• The pay rate is the average hourly rate that was paid to employees who provided the specified services.

• Gross margin percentage is calculated by subtracting the hourly wage paid to the employee and all payroll taxes, workers’ compensation premiums, and payroll processing costs, from the bill rate and dividing the result by the bill rate.

• The tables below include average bill rates, pay rates, and gross margin percentages for the entire franchise system.

• Your bill rate, pay rate, and gross margin percentage may differ.

Table 1 – Nanny Placement Services (including full-time, part-time, and summer nanny services)

All Locations

• Average Bill Rate to Families:  $23.52
• Median Bill Rate to Families:  $23.21
• Average Pay Rate to Nanny:  $14.04
• Median Pay Rate to Nanny:  $13.91
• Average Gross Margin Percentage:  31%
• Median Gross Margin Percentage:  33%

Table 2 – Babysitting Services

All Locations

• Average Bill Rate to Families:  $22.92
• Median Bill Rate to Families:  $22.67
• Average Pay Rate to Nanny:  $13.12
• Median Pay Rate to Nanny:  $13.35
• Average Gross Margin Percentage:  34%
• Median Gross Margin Percentage:  35%

Table 3 – Corporate Back-Up Care Through National Account

All Locations

• Average Bill Rate to Families:  $27.73
• Median Bill Rate to Families:  $26.68
• Average Pay Rate to Nanny:  $14.11
• Median Pay Rate to Nanny:  $13.66
• Average Gross Margin Percentage:  42%
• Median Gross Margin Percentage:  42%

• Corporate On-Call/Back-Up Care Services includes services arranged through the franchisor’s parent Bright Horizons Family Solutions (NYSE: BFAM) as well as other back-up care services provided to corporations.

Part 2 – Gross Revenues

• In this Part 2, the franchisor has prepared 2 tables to show 2020 Gross Revenues information for single- and multi-territory franchisees that were in operation for at least 12 months as of December 31, 2020.

• As of December 31, 2020, there were a total of 69 College Nannies + Sitters + Tutors franchisees operating in a total of 188 territories as of December 31, 2020.

• The tables below include information for the 69 College Nannies + Sitters + Tutors franchisees operating in 183 territories that were in operation for at least 12 months as of December 31, 2020.

• Excluded from this tables below are 5 territories that commenced operations during the 2020 calendar year and therefore were not open and operating for at least 12 months as of December 31, 2020, and 9 territories that ceased operating during the 2020 calendar year

• Franchisees operating in more than one territory report information for their College Nannies + Sitters + Tutors businesses on a combined basis.

Table 4 – Gross Revenue Information for Multiple-Territory Franchisees

• In Table 4 below, the franchisor separated the 43 franchisees that have more than one territory into 4 roughly equal-sized tiers based on their calendar year Gross Revenues in 2020.

• Out of these 43 franchisees, 17 have 2 territories, 11 have 3 territories, 8 have 4 territories, 1 has 5 territories, 1 has 6 territories, 2 have 7 territories, 1 has 8 territories, 1 has 9 territories, and 1 has 16 territories.

Tier 1

• Average Gross Revenue:  $1,796,479
• Median Gross Revenue:  $1,455,694
• Met or Exceeded the Average for the Tier:  2 of 11 (18%)
• High Gross Revenue:  $5,384,455
• Low Gross Revenue:  $1,163,447

Tier 2

• Average Gross Revenue:  $932,518
• Median Gross Revenue:  $926,027
• Met or Exceeded the Average for the Tier:  5 of 11 (45%)
• High Gross Revenue:  $1,142,123
• Low Gross Revenue:  $749,937

Tier 3

• Average Gross Revenue:  $617,675
• Median Gross Revenue:  $618,013
• Met or Exceeded the Average for the Tier:  6 of 11 (55%)
• High Gross Revenue:  $746,247
• Low Gross Revenue:  $396,501

Tier 4

• Average Gross Revenue:  $237,661
• Median Gross Revenue:  $213,975
• Met or Exceeded the Average for the Tier:  4 of 10 (40%)
• High Gross Revenue:  $385,466
• Low Gross Revenue:  $150,560

Table 5 – Gross Revenue Information for Single-Territory Franchisees

• In Table 5 below, the franchisor separated the 26 franchisees that are single-territory franchisees into 4 equal-sized tiers based on their calendar year Gross Revenues in 2020.

Tier 1

• Average Gross Revenue:  $788,827
• Median Gross Revenue:  $701,219
• Met or Exceeded the Average for the Tier:  3 of 7 (43%)
• High Gross Revenue:  $1,209,005
• Low Gross Revenue:  $619,905

Tier 2

• Average Gross Revenue:  $477,606
• Median Gross Revenue:  $475,972
• Met or Exceeded the Average for the Tier:  3 of 6 (50%)
• High Gross Revenue:  $611,634
• Low Gross Revenue:  $312,527

Tier 3

• Average Gross Revenue:  $237,590
• Median Gross Revenue:  $247,712
• Met or Exceeded the Average for the Tier:  3 of 6 (50%)
• High Gross Revenue:  $265,669
• Low Gross Revenue:  $188,247

Tier 4

• Average Gross Revenue:  $156,196
• Median Gross Revenue:  $170,583
• Met or Exceeded the Average for the Tier:  4 of 7 (57%)
• High Gross Revenue:  $185,891
• Low Gross Revenue:  $111,772

• For the purpose of this Item 19, Gross Revenues mean the gross amount, whether in money or other form of consideration, earned or received by the applicable College Nannies + Sitters + Tutors franchisees from any source in connection with the operation of the franchised businesses or any similar or related activity, but does not include any sales tax or refunds actually paid to their clients.

• The franchisor has not audited the figures provided in this Item 19. The financial performance representation figures listed in this Item 19 do not reflect the cost of sales, operating expenses, or other costs and expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Some franchisees have benefited from national account revenue, including Bright Horizons. These programs may or may not exist in your particular market.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

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